PetroGlobe Inc.
TSX VENTURE : PGB

PetroGlobe Inc.

November 14, 2006 15:43 ET

PetroGlobe Inc.: Operational Update

CALGARY, ALBERTA--(CCNMatthews - Nov. 14, 2006) - PetroGlobe Inc. (TSX VENTURE:PGB) wishes to report the following activities in Texas and Alberta:

Texas

PetroGlobe Energy USA Ltd., a wholly owned subsidiary of PetroGlobe Inc. ("PetroGlobe" or "the Company"), is advancing its initial four well exploration program in the Palo Duro Basin of West Texas.

Drilling of the second well (Young #1-32) has now been concluded. While drilling through the Wolfcamp formation at approximately 5800 feet, oil shows were encountered in the mud. During further drilling to target depth, lost circulation occurred at 6136 feet resulting in wellbore instability. The decision was made to terminate drilling at that point and to log and case the well through the prospective oil zone. A service rig is being procured for perforation of the well and testing of this zone.

Future plans for this location could include drilling of an additional well to evaluate the deeper horizons (the original target), when an engineering solution to address the unstable formation condition has been identified.

The rig has now moved to the next well in the program, the Cox #1-13 in Floyd County. Rigging up is essentially complete and drilling is expected to commence early this week.

Testing of the first well in the program (McIntosh #1-77) is now underway. The standard Four Point Isochronal flow test required by the Texas Railroad Commission will be followed by an extended test to determine reservoir parameters, gas content, and flow potential. At this point in time it is premature to draw any firm conclusions as to commerciality.

Alberta

The next phase of drilling in the Pembina area has commenced. This involves eight new wells for the Breton and Cynthia areas. PetroGlobe now has pipeline crews operating in the Breton and Cynthia areas tying in wells.

PetroGlobe recently adopted a new well metering initiative which allows all wells to be monitored remotely via the internet, enabling multiple party real time data viewing. This collected data will flow directly into the production accounting system, increasing operational efficiencies significantly. The need for field collection and manual reading of charts may be eliminated with this process.

About PetroGlobe Inc.

PetroGlobe Inc. is listed on the TSX Venture Exchange and trades under the symbol PGB. There are 26.9 million shares outstanding (28.3 million fully diluted). The 52-week range is $1.00 - $2.60. The market cap is $63.7 million based on a recent trade of $2.25.

PetroGlobe carries on business directly in Canada and indirectly in the USA through PetroGlobe Energy USA Ltd. Its wholly owned subsidiary, PetroGlobe (Canada) Limited, is in the business of international oil & gas consulting.

Major properties are in the Palo Duro Basin of West Texas and the Cynthia, Pembina and Leduc areas of West-Central Alberta.

This press release contains forward-looking information. Actual future results may differ materially from those contemplated.

This press release should not be construed to be a solicitation for the
purchase of the Corporation's common shares.


Contact Information

  • PetroGlobe Inc.
    Clifford D. Johnson, Q.C.
    Chairman & Chief Executive Officer
    (403) 265-4488 ext 226
    or
    PetroGlobe Inc.
    Darcy W. Spady, P.Eng.
    Chief Operating Officer
    (403) 265-4488 ext 238
    (403) 265-9727 (FAX)
    Email: info@petroglobe.com
    Website: www.petroglobe.com